DENVER TOWER
P reliminar y anno u ncement of sale
Denver Tower 1905 S her m an S treet | den v er , Co lo rad o
Price: $6,800,000 | Price/SF: $123.57 Cap Rate: As-Is 8.25% | Year-Two 8.54%* * calculated with 5% general vacancy
INVESTMENT HIGHLIGHTS Strong Occupancy and Stable Cash Flow The Property is currently 94% leased to multiple longterm tenants offering immediate capital appreciation through annual contract rental rate escalations as well as minimal tenant improvement costs to preserve stable cash flow. Both the current occupancy and the CBD location will support the most aggressive market debt terms and enhance leveraged returns.
Limited Near Term Lease Expirations There are no leases expiring at the property in 2013 and only 3.7% and 8.9% of the total rentable area in 2014 and 2015, respectively. With less than 13% total cumulative
Newmark Grubb Knight Frank Capital Group is offering qualified principals the opportunity to acquire an unencumbered fee simple interest in Denver Tower (the “Property”). The Property is a ten-story, Class B office building located on the eastern edge of the Downtown Central Business District at the northwest corner of East 19th Avenue and Sherman Street.
Property INFORMATION Building Address:
1905 Sherman Street Denver, Colorado 80203
Rentable Square Feet:
55,029
Occupancy:
94%
Completed:
1981
Number of Floors:
Ten
Parking:
Three levels of parking including two underground secured levels; 0.85:1,000 rsf
rollover in the first three years, Denver Tower offers stable, consistent income. Colorado Legal Services leases approximately 45% of the building rentable area with over seven years of remaining lease term.
Below Market Lease Rates Current market lease rates at competing buildings range from $18.50 to $25.00 per square foot versus the Property’s current average rental rate of $16.00 per square foot. Rental rate growth is anticipated due to strong CBD absorption of over 300,000 square feet, dropping overall vacancy to 14.3% as of year-end 2012 which is down year-over-year from 16.1%. Historically, Denver Tower rental rates were over $20.00 per square foot in 2006 or $4.00 to $6.00 per square foot above current lease rates.
Denver Tower 1905 S her m an Street | den v er , Co lo rad o
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Denver CBD Location The Property is located in downtown Denver’s Uptown micromarket. Occupancy for the resilient submarket remained stable during the most recent downturn and continues to preserve one of the lowest vacancy rates in the overall Denver market. While Denver Tower maintains a downtown identity, the property is ideally located along the periphery of the CBD core which offers easy access for tenants and visitors. The Property is within two blocks of Denver’s Light Rail system via either the 16th Street Mall Shuttle or the new 18th/19th Street Circulator to be completed in 2013. FOR MORE INFORMATION CONTACT:
1800 Larimer Street, Suite 1700 Denver, Colorado 80202 303.892.1111
David G. Tilton Executive Managing Director 303.260.4354 [email protected] John A. Torp Associate [email protected]
303.260.4325
No broker shall be entitled to a commission unless broker executes a brokerage agreement acceptable to us and our principal and the conditions as set forth in the brokerage agreement are fully and unconditionally satisfied. Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice and to any special conditions imposed by our principal. Newmark Grubb Knight Frank Capital Group or its independent brokers are or will be acting as agents of the seller/lessor. Newmark Grubb Knight Frank Capital Group or its independent brokers will not act as your agent unless an agency agreement is signed and in effect. © 2013, Newmark Grubb Knight Frank Capital Group. All Rights Reserved.
Denver Tower 1905 S her m an S treet | den v er , Co lo rad o
Price: $6,800,000 | Price/SF: $123.57 Cap Rate: As-Is 8.25% | Year-Two 8.54%* * calculated with 5% general vacancy
INVESTMENT HIGHLIGHTS Strong Occupancy and Stable Cash Flow The Property is currently 94% leased to multiple longterm tenants offering immediate capital appreciation through annual contract rental rate escalations as well as minimal tenant improvement costs to preserve stable cash flow. Both the current occupancy and the CBD location will support the most aggressive market debt terms and enhance leveraged returns.
Limited Near Term Lease Expirations There are no leases expiring at the property in 2013 and only 3.7% and 8.9% of the total rentable area in 2014 and 2015, respectively. With less than 13% total cumulative
Newmark Grubb Knight Frank Capital Group is offering qualified principals the opportunity to acquire an unencumbered fee simple interest in Denver Tower (the “Property”). The Property is a ten-story, Class B office building located on the eastern edge of the Downtown Central Business District at the northwest corner of East 19th Avenue and Sherman Street.
Property INFORMATION Building Address:
1905 Sherman Street Denver, Colorado 80203
Rentable Square Feet:
55,029
Occupancy:
94%
Completed:
1981
Number of Floors:
Ten
Parking:
Three levels of parking including two underground secured levels; 0.85:1,000 rsf
rollover in the first three years, Denver Tower offers stable, consistent income. Colorado Legal Services leases approximately 45% of the building rentable area with over seven years of remaining lease term.
Below Market Lease Rates Current market lease rates at competing buildings range from $18.50 to $25.00 per square foot versus the Property’s current average rental rate of $16.00 per square foot. Rental rate growth is anticipated due to strong CBD absorption of over 300,000 square feet, dropping overall vacancy to 14.3% as of year-end 2012 which is down year-over-year from 16.1%. Historically, Denver Tower rental rates were over $20.00 per square foot in 2006 or $4.00 to $6.00 per square foot above current lease rates.
Denver Tower 1905 S her m an Street | den v er , Co lo rad o
e
h 18t
e av
sh
ve ha t 9 e1 li n c o
er m an
an
st
gr t st
e
h 20t
e av
19th St ln
Br st
oa
dw ay
st
20th St N
Denver CBD Location The Property is located in downtown Denver’s Uptown micromarket. Occupancy for the resilient submarket remained stable during the most recent downturn and continues to preserve one of the lowest vacancy rates in the overall Denver market. While Denver Tower maintains a downtown identity, the property is ideally located along the periphery of the CBD core which offers easy access for tenants and visitors. The Property is within two blocks of Denver’s Light Rail system via either the 16th Street Mall Shuttle or the new 18th/19th Street Circulator to be completed in 2013. FOR MORE INFORMATION CONTACT:
1800 Larimer Street, Suite 1700 Denver, Colorado 80202 303.892.1111
David G. Tilton Executive Managing Director 303.260.4354 [email protected] John A. Torp Associate [email protected]
303.260.4325
No broker shall be entitled to a commission unless broker executes a brokerage agreement acceptable to us and our principal and the conditions as set forth in the brokerage agreement are fully and unconditionally satisfied. Although all information furnished regarding property for sale, rental or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease or financing or withdrawal without notice and to any special conditions imposed by our principal. Newmark Grubb Knight Frank Capital Group or its independent brokers are or will be acting as agents of the seller/lessor. Newmark Grubb Knight Frank Capital Group or its independent brokers will not act as your agent unless an agency agreement is signed and in effect. © 2013, Newmark Grubb Knight Frank Capital Group. All Rights Reserved.
